Due to COVID, the global economy faced unprecedented challenges from 2020 onwards, and Switzerland was no exception. To support companies that suffered significant economic damage from pandemic-related restrictions, the Swiss government implemented extensive hardship measures. These often included direct financial support or liquidity assistance.
Now that the pandemic has subsided and normalcy is returning, it is crucial to consider the long-term consequences of these support measures.
Companies that received non-repayable grants, in particular, must be aware of the conditions: these grants often prohibit dividend distributions or capital repayments for a period of three years or until the grant is fully repaid.
Companies planning a restructuring should be cautious. Many restructurings involve distributions or economically equivalent measures that are typically tax-neutral. In such cases, an unpleasant surprise in the form of a repayment obligation for COVID-19 aid could be lurking.
At Probst Partner AG, we are ready to help you navigate the complexities of these regulations and ensure that your company is protected and compliant during the restructuring phase.
